IRDAI (Well being Insurance coverage) Rules 2016 permits Life Insurance coverage Corporations to supply benefit-based medical insurance merchandise solely.
Chennai: After banning life insurers from promoting indemnity-based well being insurance policies a couple of years again, Insurance coverage Regulatory and Growth Authority of India is now analyzing the feasibility of permitting them once more.
IRDAI (Well being Insurance coverage) Rules 2016 permits Life Insurance coverage Corporations to supply benefit-based medical insurance merchandise solely. Representations have been acquired from life insurance coverage corporations to permit them to supply indemnity merchandise as properly, the regulator stated.
Indemnity-based well being plans are insurance coverage insurance policies during which the insured is reimbursed the precise expense incurred throughout hospitalisation as much as the entire sum insured underneath the coverage.
Traditionally Medical insurance is recognised as one of many vital parts of well being care and medical insurance premiums have been registering a big CAGR of round 20 per cent within the previous 10 years in India. It’s on this context that IRDAI is making a feasibility research.
A number of years again, life insurers had began providing such plans. Nevertheless, in July 2016, IRDAI had banned them from providing them.
In response to business, IRDAI had discovered that indemnity cowl was a service greater than a product and didn’t need life insurers to promote them as their core competency just isn’t offering well being cowl.
Now IRDAI has shaped a committee, which can look into feasibility and the enterprise scope for all times insurance coverage corporations to supply indemnity primarily based medical insurance merchandise and extant statutory provisions which are relevant on this regard. The Committee shall submit its suggestions inside two months.
In response to S. Prakash, MD of Star Well being and Allied Insurance coverage and a member of the committee, this can be a good initiative for the regulator. “We should research the professionals and cons of this suggestion earlier than offering suggestion to the regulator,” he stated.